Nebraska Medicaid Recipients Face Cuts as Call Center Wait Times Double
A 64-year-old cancer patient in Omaha was told his coverage was gone, highlighting the administrative strain of new federal work requirements.
By Andrew Kovalenko ·
Nebraska residents subject to new Medicaid work requirements are facing longer wait times and coverage interruptions as the state implements rules that took effect on May 1. The changes, part of a federal law signed by President Trump, mandate that adults prove they are working 80 hours a month to keep their health insurance. Nebraska became the first state to enforce these provisions, eight months ahead of most other jurisdictions.
The administrative burden has placed pressure on state systems. Data from the Nebraska Department of Health and Human Services shows that average wait times at the department’s call center nearly doubled between May and July. Hold times rose from approximately 13 minutes to 26 minutes. While wait times decreased in August, the volume of calls increased sharply. The center received more than 101,000 calls in August, a 66% jump from May levels.
Kenny McMorris, CEO of the Charles Drew Health Center in North Omaha, noted that working patients often struggle to spend hours on the phone. McMorris stated that roughly half of the center’s 13,385 patients use Medicaid. Of those patients, 42% are subject to the new work requirements. He said the situation requires both technology and sufficient staff to assist enrollees.
The policy affects approximately 70,000 adult Medicaid recipients in Nebraska. State officials reported that 86% of affected applicants met the requirement or qualified for an exclusion. Additionally, 93% of existing enrollees kept their coverage. Jeff Powell, a spokesperson for the health department, described the rollout as very successful. However, advocates for low-income residents argue that poor training and inadequate staffing have created confusion.
Eli McCreary, a 64-year-old Omaha resident, experienced the disruptions firsthand. He was diagnosed with kidney cancer in June after completing a substance use treatment program in March. McCreary also has diabetes and chronic obstructive pulmonary disease. He received a call from a CHI Health hospital stating he was no longer insured under Medicaid. The hospital told him to pay out-of-pocket or cancel his appointments.
McCreary called a help line and was told his benefits required him to work. A representative said, "You're required to do work to stay on. And you haven't fulfilled your work requirement." McCreary canceled a CT scan and delayed a cancer appointment with a specialist who travels to Omaha. He said he missed his window for that appointment by a month.
Federal law provides exemptions for people who are too sick to work, including those with serious medical conditions or substance use disorders. Attorneys said McCreary’s conditions should have exempted him. Powell confirmed McCreary was eligible for Medicaid under the Affordable Care Act, which places him in the group subject to the new work rules. The health department said it sent tens of thousands of notices to inform enrollees of the changes.
To implement the rules, Nebraska spent $8.2 million over two years on government contractors. The funds were allocated to Public Consulting Group and Covendis for staffing and information technology support. State documents show at least half a dozen contractors costing more than $250,000 each. One individual received compensation exceeding $1.8 million. Sarah Maresh of the nonprofit Nebraska Appleseed called the amounts shocking.
Governor Jim Pillen, a Republican, said in December that the state appreciated the administration for delivering the reform. He noted that the state would not add workforce to implement the rules, a decision critics have questioned. Pillen also instituted a government-wide hiring freeze in July.
Internal state documents show that as of early July, most denials related to unsubmitted paperwork. The state described this outcome as expected. McCreary said he did not have an account on the state’s online portal and preferred to handle matters by phone or in person. He said it is possible he missed letters regarding his coverage. He described his reaction to the call from the hospital as despair.
